Beijing housing prices are expected to grow 16.3 percent annually, faster than the overall economic growth rate, until the 2008 Olympic Games, Beijing-based China Business Times reported Wednesday.

The paper, quoting a 2004 economic report released by the Beijing Olympic Games Economic Research Society, said the Chinese capital's property market has developed rapidly after Beijing won the bid to host the 2008 Olympic Games.

The economic report said that in the coming four years, the local government will spend a record 180 billion yuan (21.8 billion US dollars) to construct 142 key projects to improve the city's infrastructure.

The heavy spending will greatly change the overall city planning and promote the development of the property market in all city districts, it said. With the newly-built highways and upcoming subway lines, residential housing in suburbs will mushroom.

The economic report also predicts that Beijing's per capita GDP will reach 40,000 yuan (4,837 dollars) in 2008 in accordance with the city's development program. This means that 2008 will be a starting point for the city's high-speed development of the property market.

The fast growth of the property market will "very likely" continue after the 2008 Olympic Games, just like that in Seoul.

In 2003, Beijing's investment in the property market totaled 120.2 billion yuan (14.53 billion dollars), up 21.5 percent from 2002,accounting for 55.75 percent of the total investment in the fixed assets.

The figure climbed to 147.3 billion yuan (17.81 billion dollars)in 2004, representing a 22.5 percent rise from the previous year. The proportion of housing sector's investment rose to 58.3 percent of the city's total investment in the fixed assets.

Source: Xinhua